European stocks opened the week higher on strong earnings, UK mergers and acquisitions and a rebound in Asian stocks.
The STOXX Europe 600 rose 0.59% and the German DAX rose 0.16%, while the UK FTSE 100 closed 0.70% higher. The French CAC 40 rose 0.95%, while the Swiss Market Index rose 0.45%.
British Chancellor of the Exchequer Rishi Sunak urged Prime Minister Boris Johnson to lift Britain’s “draconian” travel restrictions, warning of possible damage to tourism and economic sectors , media reported on Sunday. In a letter to Johnson, Sunak said COVID-19-induced border rules were “out of sync with [the UK’s] international competitors. The country’s ministers will hold a meeting on Thursday to determine travel rules for August.
The UK government is expected to add holiday destinations, including Spain, to the potential new list of countries at high risk of being added to the COVID-19 quarantine list, the Times reported. The move could push up to 1 million British tourists to return home. Greece and Italy could also be added to the new list in an attempt to discourage people from going to these places.
Britain’s final manufacturing PMI fell to 60.4 in July from 63.9 in June, marking a four-month low, IHS Markit said. The latest reading was in line with flash expectations, as growth in production and new orders slowed, but remained among the best in survey history thanks to strong sales to domestic customers and to the ‘export.
The eurozone’s final manufacturing PMI fell to 62.8 in July from 63.4 in May, continuing to expand despite a slower month, IHS Markit said. The reading was slightly above the flash figure of 62.6. Markit’s latest survey showed a slowdown in the growth rates of production and orders, although employment continued to increase.
Switzerland’s consumer price index fell in July after rising for six consecutive months, as seasonal sales and falling air travel and vacation values weigh on the monthly rate, the monthly rate said. Federal Statistics Bureau. Consumer prices fell 0.1% on a month to 101.0 points in July, as expected, after rising 0.1% in June. Year-over-year, the inflation rate was 0.7% in July, while basic consumer prices were down 0.2% from the previous month, but were up 0 , 2% compared to the previous year.
On the corporate side, Meggitt (MGGT.L) accepted an offer to buy US motion control technology provider Parker-Hannifin worth around £ 6.3 billion ($ 8.77 billion ), pushing up its shares by 58%. Shareholders of the UK aerospace company will receive £ 8 in cash for each share held under a court-sanctioned scheme of arrangement. The offer has been unanimously recommended by the directors of Meggitt and requires the approval of at least 75% of the votes cast by shareholders at general and judicial meetings. The transaction is expected to be finalized in the third quarter of 2022.
Allianz (ALV.F) fell 8% after the US Department of Justice launched an investigation into its structured alpha funds, after lawsuits were brought against the German asset manager in US courts for an alleged mismanagement of investments. The investigation was launched after pension funds for truck drivers, teachers and metro workers filed lawsuits against Allianz for failing to protect their investments during the COVID-19 pandemic. Allianz plans to cooperate fully with the investigation after receiving a request for documents and information from the Justice Department, according to a statement.